Mauritius legally defines cryptocurrencies as "virtual assets" under its Virtual Assets and Initial Token Offering Services Act 2021 (VAITOS Act). This means the sector is regulated, with virtual asset service providers requiring licensing from the Financial Services Commission (FSC). However, the taxation of these assets currently falls under general tax principles rather than specific crypto legislation. The Mauritius Revenue Authority (MRA) is the governing body for crypto taxation, applying the existing Income Tax Act and other general tax laws. While the VAITOS Act regulates the operational aspects of virtual assets, the MRA determines their tax treatment. For individual investors, Mauritius imposes no income tax or capital gains tax on cryptocurrencies held as capital assets. This means gains from buying, selling, or swapping crypto are fully exempt, regardless of how long the asset was held. There are no distinctions between short-term or long-term gains for capital assets. However, if an individual's crypto activities are deemed to be a business, the resulting profits would be taxed as business income. For corporations, the standard corporate tax rate is 15%. Notably, a specialized 1% token trading regime is available for qualifying companies. A 15% Value Added Tax (VAT) applies to goods and services paid for with crypto, however, the VAT treatment for direct crypto-to-crypto trades remains unclear. Both crypto-to-fiat and crypto-to-crypto transactions are not taxable if the crypto is held as a capital asset, but become taxable as business income if it constitutes a business activity. Specific crypto activities also follow this capital versus revenue distinction. Staking rewards, mining proceeds, and gains from DeFi activities or NFTs are generally treated as income and taxed if they are revenue-generating business activities. For instance, hardware and electricity expenses related to mining are deductible. If these activities are not considered a business, and the assets are held for capital appreciation, any gains remain exempt. There is no specific official guidance for DeFi and NFTs, so general tax principles apply to determine if they are capital or revenue in nature.
Tax Rates
| Effective individual rate | 0 |
| Capital gains tax | 0% |
| Income tax on crypto | Taxable as business income if revenue-generating, capital gains exempt |
| Corporate tax | 15% standard, 1% token trading regime available |
| VAT | 15% on goods/services sold for crypto, crypto-to-crypto unclear |
Activity Taxes
| Staking | Taxed as income at receipt if revenue nature, capital exempt |
| Mining | Taxed as business income, hardware and electricity expenses deductible |
| DeFi | Taxed as income if revenue-generating, capital gains exempt |
| NFTs | Taxed as business income if trading, capital gains exempt if held |
Taxable Events
| Crypto → Fiat | Not taxable if held as capital, taxable if business activity |
| Crypto → Crypto | Not taxable if held as capital, taxable if business activity |
Holding Period
| Holding period benefit | Full exemption for capital gains, no holding period distinction required |
Sources